GBP/USD steadies around 1.29 handle, awaits UK PMI for fresh impetus

The GBP/USD pair failed to build on early tepid recovery gains and retreated few pips from session tops to currently trade back around the 1.2900 handle.

A mildly softer tone surrounding the greenback helped the pair to recover some of previous session's sharp losses, led by renewed worries of a possible 'hard Brexit' scenario after EU leaders endorsed stiff divorce terms for Britain at Brussels summit on Saturday.

The tepid recovery, however, lacked momentum amid growing bets for an eventual Fed rate-hike action in June, despite of Monday's weaker readings on consumer spending, personal income and inflation data from the US. 

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Moreover, traders also refrained from building any fresh positions ahead of the UK Manufacturing PMI print, which is expected to have ticked lower to 54.0 during April from previous month's 54.2.

In absence of any relevant economic releases from the US, any news surrounding the Brexit negotiations would is likely to move the pair later during the day. 

Technical levels to watch

A follow through retracement below 1.2880-75 immediate support could extend the corrective slide further towards 1.2840 horizontal support before the pair eventually drops to the 1.2800 handle.

On the flip side, any recovery move beyond 1.2910-15 immediate resistance now seems to confront strong hurdle near mid-1.2900s, which if cleared decisively should assist the pair towards reclaiming the key 1.30 psychological mark.